BCSC panel sanctions OTC Bulletin Board company and two directors

VANCOUVER, Dec. 4, 2012 /CNW/ - A British Columbia Securities Commission
panel has sanctioned a company quoted on the U.S. Over-the-Counter
Bulletin Board and two of its directors for contravening securities
laws.

In July 2012, a commission panel found that Brookmount Explorations Inc,
Peter John Flueck and Zafer Erick Sungur made misrepresentations in
news releases issued between February 2005 and June 2007. In doing so,
the company also contravened National Instrument 43-101, the national
standard for mining disclosure.

The news releases falsely stated the value of Brookmount's principal
mining property by claiming that it had mineral reserves when in fact
it had none, contrary to both geological reports Brookmount had
received, and what Brookmount had reported in its filings with the U.S.
Securities and Exchange Commission.

Additionally, the panel found that Flueck and Sungur breached a BCSC
cease trade order when they sold Brookmount securities in July and
August of 2007.

In its sanctions decision, the panel stated that Flueck and Sungur "are
not people who belong in the public markets until they have had an
opportunity to reflect on their misconduct and to educate themselves on
the responsibilities of directors and officers of public companies."

For his misconduct, Sungur is banned from trading or purchasing
securities of any issuer with whom he is in a special relationship, and
from acting as a director or officer of any issuer. He is also
prohibited from becoming or acting as a promoter, from engaging in
investor relations activities, and from acting in a management or
consultative capacity in connection with the securities market.

The panel ordered Sungur to pay a $45,000 fine. All prohibitions will
remain in place until the later of five years or such time as the fine
is paid. Additionally, Sungur's ban on becoming or acting as a director
or officer will remain in place until the later of five years, the date
he successfully completes the Simon Fraser University course Public Companies; Financing, Governance and Compliance, or such time as the fine is paid.

Flueck is banned from trading or purchasing securities of any issuer
with whom he is a person in a special relationship, and from acting as
a director or officer of any issuer (except that he may act as a
director an officer of Brookmount until May 29, 2013 for the sole
purpose of selling or winding up the company). He is also prohibited
from becoming or acting as a promoter, from engaging in investor
relations activities, and from acting in a management or consultative
capacity in connection with the securities market.

Flueck was ordered to pay a $65,000 fine. All prohibitions will remain
in place until the later of eight years or such time as the fine is
paid. Additionally, Flueck's ban on becoming or acting as a director or
officer will remain in place until the later of eight years, the date
he successfully completes the Simon Fraser University course Public Companies; Financing, Governance and Compliance, or such time as the fine is paid.

The panel also made a permanent cease trade order relating to
Brookmount, replacing the cease trade order from June 2007.

The B.C. Securities Commission is the independent provincial government
agency responsible for regulating trading in securities within the
province. You may view the decision on our website, www.bcsc.bc.ca, by typing Flueck, Sungur, Brookmount Explorations Inc. or 2012
BCSECCOM 445 in the search box. Information regarding disciplinary
proceedings can be found in the Enforcement section of the BCSC website.